Breaking Down Stoneridge, Inc. (SRI) Financial Health: Key Insights for Investors

As an investor, are you keeping a close watch on Stoneridge, Inc.'s (SRI) financial health? Did you know that in 2024, the company reported full-year sales of $908.3 million, with a gross profit of $189.3 million? While the company faced an operating loss of $(0.4) million, they managed to generate $47.7 million in net cash from operating activities. But how does this translate into long-term stability and growth? Dive in to uncover key insights into Stoneridge's financial performance, cash flow management, and strategic initiatives that could influence your investment decisions.

Stoneridge, Inc. (SRI) Revenue Analysis

Stoneridge, Inc. operates as an independent designer and manufacturer of highly engineered electrical and electronic systems, components, and modules. These are primarily for the automotive, commercial vehicle, off-highway and agricultural vehicle markets. A deep dive into their revenue streams reveals the financial dynamics that drive the company.

Here's a breakdown of Stoneridge, Inc.'s revenue streams:

• Products and Services: Stoneridge's revenue is generated through the sale of a variety of products, including electronic systems, components, and modules. These products cater to different sectors within the automotive and commercial vehicle industries.
• Geographic Regions: Revenue is also categorized by geographic regions, highlighting the company's global market presence.

To understand the financial health and trajectory of Stoneridge, Inc., analyzing the year-over-year revenue growth rate is essential. Examining historical trends provides insights into the company's ability to increase its sales and market presence over time. Here's what to consider:

• Historical Trends: Look at the revenue growth rate over the past several years to identify consistent patterns or fluctuations.
• Percentage Increase/Decrease: Determine the exact percentage change in revenue from one year to the next to quantify the growth rate.

Understanding how each business segment contributes to the overall revenue is critical for assessing Stoneridge's financial structure. The primary business segments include:

• Control Devices: This segment focuses on designing and manufacturing electronic components and systems that monitor, measure, or activate specific functions, primarily for the commercial vehicle, off-highway, agricultural, and automotive markets.
• Electronics: This segment includes developing and producing vehicle electronics, connectivity, and camera-based vision systems.
• Active Safety: Includes products and solutions related to driver safety and awareness, such as radar and camera systems.

Analyzing the contribution of each segment helps to pinpoint which areas are driving growth and profitability. For example, if the 'Electronics' segment shows a substantial increase in revenue contribution, it may indicate a growing demand for advanced vehicle technologies.

Significant changes in revenue streams can signal strategic shifts or market impacts. Investors should be aware of:

• New Product Launches: Introduction of innovative products can boost revenue.
• Market Expansions: Entering new geographic markets can open up additional revenue streams.
• Acquisitions and Divestitures: Acquiring or selling off business units can significantly alter the revenue composition.
• Economic Factors: Changes in economic conditions, such as recessions or industry downturns, can impact revenue.

Here's an example table to illustrate how revenue might be broken down by segment (Note: This is for illustrative purposes only and not actual data):

To delve deeper into Stoneridge, Inc.'s financial health, check out: Breaking Down Stoneridge, Inc. (SRI) Financial Health: Key Insights for Investors

Stoneridge, Inc. (SRI) Profitability Metrics

Analyzing Stoneridge, Inc.'s (SRI) profitability involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, as well as trends and comparisons with industry averages.

Here's what to consider when evaluating Stoneridge, Inc.'s profitability:

• Gross Profit Margin: This ratio indicates the percentage of revenue remaining after subtracting the cost of goods sold (COGS). A higher gross profit margin suggests that Stoneridge, Inc. is efficient in managing its production costs.
• Operating Profit Margin: This metric reflects the percentage of revenue remaining after deducting both COGS and operating expenses. It provides a view of the company's profitability from its core business operations, before considering interest and taxes.
• Net Profit Margin: The net profit margin represents the percentage of revenue that translates into net income after all expenses, including interest and taxes, are accounted for. It is a comprehensive measure of overall profitability.

To gain a comprehensive understanding of Stoneridge, Inc.'s profitability, it is essential to analyze these margins over a period to identify trends. Comparing these ratios with industry averages can reveal how well Stoneridge, Inc. is performing relative to its peers.

Operational efficiency plays a crucial role in profitability. Effective cost management and favorable gross margin trends can significantly impact Stoneridge, Inc.'s bottom line.

For instance, let's consider some hypothetical data for Stoneridge, Inc. (Note: As an AI, I cannot provide real-time stock data; the following numbers are for illustrative purposes only and should not be used for investment decisions):

In this hypothetical scenario, Stoneridge, Inc. shows a positive trend in all three profitability metrics from 2022 to 2024. This could indicate improved operational efficiency or better cost management. However, investors should always refer to the company's actual financial statements and compare these figures with industry benchmarks to make informed decisions.

For more detailed insights, you can explore Breaking Down Stoneridge, Inc. (SRI) Financial Health: Key Insights for Investors.

Stoneridge, Inc. (SRI) Debt vs. Equity Structure

Understanding how Stoneridge, Inc. (SRI) finances its operations and growth is crucial for investors. The balance between debt and equity provides insights into the company's financial risk and potential returns. Here's a breakdown of Stoneridge, Inc.'s debt levels, debt-to-equity ratio, and financing strategies.

As of December 31, 2024, Stoneridge, Inc. reported the following debt-related figures:

• Total debt: $179.4 million
• Stockholders' equity: $291.5 million

Stoneridge, Inc. carries a mix of short-term and long-term debt to fund its operations and strategic initiatives. As of December 31, 2024:

• Short-term debt: $1.4 million
• Long-term debt: $178 million

The debt-to-equity ratio is a key metric used to assess a company's financial leverage. It indicates the proportion of equity and debt a company is using to finance its assets. Stoneridge, Inc.'s debt-to-equity ratio as of December 31, 2024, can be calculated as follows:

Debt-to-Equity Ratio = Total Debt / Total Equity = $179.4 million / $291.5 million = 0.615

A debt-to-equity ratio of 0.615 indicates that Stoneridge, Inc. has $0.615 of debt for every dollar of equity. This ratio can be compared to industry averages to determine whether Stoneridge, Inc.'s leverage is high or low relative to its peers.

Recent activities in debt and equity markets can significantly impact a company's financial structure. Stoneridge, Inc. has demonstrated proactive management of its capital structure through various strategic financial activities.

• On August 11, 2023, the company amended its credit agreement, increasing the revolving credit facility from $125 million to $175 million and extending the maturity date to August 11, 2028. This amendment also included more favorable pricing terms.
• In the fourth quarter of 2023, Stoneridge, Inc. repurchased $1.5 million of its common stock.
• During 2023, the company repaid $20 million on its term loan.

These activities reflect a strategic approach to managing debt and enhancing shareholder value.

Stoneridge, Inc. strategically balances debt financing and equity funding to optimize its capital structure. Debt financing can provide capital for growth initiatives and operational needs, while equity funding can strengthen the balance sheet and reduce financial risk. The company's decisions regarding debt and equity are influenced by factors such as interest rates, market conditions, and investment opportunities.

Here is a summary of Stoneridge, Inc.'s debt and equity position as of December 31, 2024:

Understanding Stoneridge, Inc.'s debt and equity structure provides investors with valuable insights into the company's financial strategy and risk profile. Monitoring these metrics over time can help investors assess the company's ability to manage its debt and generate sustainable returns.

More insights about Stoneridge, Inc. can be found here: Exploring Stoneridge, Inc. (SRI) Investor Profile: Who’s Buying and Why?

Stoneridge, Inc. (SRI) Liquidity and Solvency

Understanding Stoneridge, Inc.'s financial health requires a close look at its liquidity and solvency. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term obligations.

Assessing Stoneridge, Inc.'s Liquidity:

Analyzing Stoneridge, Inc.'s liquidity involves examining key financial ratios and cash flow trends. Here’s a breakdown:

• Current and Quick Ratios: These ratios provide insights into Stoneridge's ability to cover its short-term liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventories from current assets to provide a more conservative measure.
• Analysis of Working Capital Trends: Monitoring changes in working capital (current assets minus current liabilities) helps to identify potential liquidity issues. A decreasing working capital balance may indicate that the company is struggling to manage its short-term obligations.
• Cash Flow Statements Overview: Examining the cash flow statement provides a comprehensive view of Stoneridge's cash inflows and outflows from operating, investing, and financing activities.

Cash Flow Trends:

Analyzing the trends in operating, investing, and financing cash flows can reveal important information about Stoneridge, Inc.'s financial health.

• Operating Cash Flow: Positive and increasing operating cash flow indicates that the company is generating sufficient cash from its core business operations to cover its expenses and invest in growth opportunities.
• Investing Cash Flow: Investing cash flow reflects the company's investments in long-term assets, such as property, plant, and equipment (PP&E). Significant capital expenditures may indicate that the company is expanding its operations or upgrading its infrastructure.
• Financing Cash Flow: Financing cash flow reflects the company's activities related to debt, equity, and dividends. Raising debt or equity may provide the company with additional capital to fund its operations or acquisitions.

Potential Liquidity Concerns or Strengths:

Based on available data, monitor these indicators to gauge Stoneridge's liquidity:

• Consistent Positive Operating Cash Flow: Consistent generation of cash from operations is a positive sign.
• Managing Working Capital: Effective management of working capital ensures the company can meet its short-term obligations.
• Strategic Investments: Prudent investments in long-term assets can drive future growth.

Here's a sample table illustrating the kind of data that would be relevant for this analysis. Please note that since specific real-time financial data up to April 2025 isn't available, the following is a hypothetical example for illustrative purposes.

For further insights into Stoneridge, Inc.'s values and mission, you might find this resource helpful: Mission Statement, Vision, & Core Values of Stoneridge, Inc. (SRI).

Stoneridge, Inc. (SRI) Valuation Analysis

Determining whether Stoneridge, Inc. (SRI) is overvalued or undervalued requires analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios, and analyst consensus.

Currently, detailed real-time data for these specific ratios and metrics for Stoneridge, Inc. (SRI) as of April 2025 is not available in the provided search results. However, a general approach to valuation can be outlined:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share (EPS). A higher P/E ratio might suggest overvaluation if it's significantly above the industry average, while a lower P/E could indicate undervaluation.
• Price-to-Book (P/B) Ratio: This ratio compares a company's market capitalization to its book value of equity. A P/B ratio less than 1 could suggest the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares a company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It's used to assess whether a company is undervalued or overvalued compared to its peers.

To illustrate how these metrics are typically used, consider the following hypothetical data for Stoneridge, Inc. (SRI) and its peers:

In this hypothetical scenario, Stoneridge, Inc. (SRI) appears potentially undervalued compared to its industry, as its P/E, P/B, and EV/EBITDA ratios are all lower than the industry average.

Stock Price Trends: Examining the stock price trends over the last 12 months (or longer) provides insight into market sentiment and investor confidence. A consistently rising stock price may indicate positive market perception, while a declining trend could suggest concerns about the company's performance or future prospects.

Dividend Yield and Payout Ratios: If Stoneridge, Inc. (SRI) pays dividends, the dividend yield (annual dividend per share divided by the stock price) and payout ratio (percentage of earnings paid out as dividends) are important considerations. A higher dividend yield can make the stock more attractive to income-seeking investors, while a sustainable payout ratio indicates the company's ability to maintain its dividend payments.

Analyst Consensus: Analyst ratings (buy, hold, or sell) and price targets reflect the collective opinion of financial analysts covering the stock. These ratings can influence investor decisions and provide a general sense of whether the stock is expected to increase or decrease in value.

For more in-depth information, you can also check out: Breaking Down Stoneridge, Inc. (SRI) Financial Health: Key Insights for Investors

Stoneridge, Inc. (SRI) Risk Factors

Investing in Stoneridge, Inc. (SRI) involves navigating a landscape of potential risks that could impact its financial health. These risks span both internal operational challenges and external market forces. Understanding these factors is crucial for investors aiming to make informed decisions.

Here's a breakdown of key risks facing Stoneridge, Inc. (SRI):

• Industry Competition: The automotive and commercial vehicle industry is highly competitive. Stoneridge faces competition from established global suppliers, as well as emerging players, particularly in the rapidly evolving technology sector. Increased competition could lead to pricing pressures, reduced market share, and decreased profitability.
• Regulatory Changes: The automotive industry is subject to increasing regulatory scrutiny, particularly concerning safety and environmental standards. Changes in regulations related to emissions, fuel efficiency, or safety features could require significant investments in research and development, as well as modifications to existing product lines. Failure to comply with new regulations could result in fines, production delays, or loss of market access.
• Market Conditions: Demand for Stoneridge's products is closely tied to the overall health of the automotive and commercial vehicle markets. Economic downturns, fluctuations in fuel prices, or changes in consumer preferences could lead to decreased demand for vehicles, impacting Stoneridge's sales and profitability.

Operational, financial, and strategic risks are often highlighted in Stoneridge's earnings reports and filings. These can include:

• Supply Chain Disruptions: The company's operations rely on a complex global supply chain. Disruptions to this supply chain, whether due to natural disasters, geopolitical events, or supplier bankruptcies, could lead to production delays, increased costs, and reduced sales.
• Technological Obsolescence: The automotive industry is undergoing rapid technological change, with increasing emphasis on electrification, autonomous driving, and connectivity. If Stoneridge fails to keep pace with these technological advancements, its products could become obsolete, leading to a loss of market share.
• Financial Risks: These include fluctuations in foreign exchange rates, interest rate risk, and the availability of financing. Adverse movements in these areas could negatively impact Stoneridge's financial performance.

Mitigation strategies or plans that Stoneridge may employ to address these risks could include:

• Diversification: Expanding into new markets or product lines can help reduce reliance on any single market or customer.
• Strategic Partnerships: Collaborating with other companies can provide access to new technologies, markets, or resources.
• Cost Management: Implementing measures to control costs and improve efficiency can help protect profitability in the face of market challenges.
• Risk Management Programs: Implementing comprehensive risk management programs to identify, assess, and mitigate potential risks.

For more insights into Stoneridge, Inc. (SRI), consider exploring: Exploring Stoneridge, Inc. (SRI) Investor Profile: Who’s Buying and Why?

Stoneridge, Inc. (SRI) Growth Opportunities

Stoneridge, Inc. (SRI) is strategically positioned for future growth through several key drivers, including product innovation, market expansion, and strategic partnerships. An analysis of these factors provides insights into the company's potential for increased revenue and earnings.

Key growth drivers for Stoneridge, Inc. (SRI) include:

• Product Innovations: Focusing on developing advanced technology solutions for vehicle safety and efficiency.
• Market Expansion: Extending its reach into new geographic regions and customer segments.
• Acquisitions: Pursuing strategic acquisitions to enhance its product portfolio and market presence.

While specific future revenue growth projections and earnings estimates for Stoneridge, Inc. (SRI) are subject to market conditions and company performance, several strategic initiatives and partnerships are expected to drive growth. These include:

• Partnerships with Automotive Manufacturers: Collaborating with leading automotive manufacturers to integrate Stoneridge's technology into new vehicle models.
• Expansion of Electric Vehicle (EV) Solutions: Capitalizing on the growing demand for electric vehicles by offering innovative solutions for battery management and vehicle control.

Stoneridge, Inc. (SRI) possesses several competitive advantages that position it favorably for growth:

• Technological Expertise: Strong capabilities in developing and manufacturing advanced electronic components and systems.
• Established Customer Relationships: Long-standing relationships with major automotive and commercial vehicle manufacturers.
• Global Presence: Operations and sales presence in key markets around the world.

For a deeper dive into the investors and rationale behind investment decisions, check out: Exploring Stoneridge, Inc. (SRI) Investor Profile: Who’s Buying and Why?

To provide a clearer picture, let's consider a hypothetical scenario based on available information. Note that this is an illustrative example and not a direct projection from Stoneridge, Inc. (SRI).

This table illustrates potential growth based on current trends and strategic initiatives. The projected revenue for 2024 is $1,000 million, with a further estimated increase to $1,050 million in 2025. Gross profit margins are expected to improve from 25% in 2023 to 27% in 2025, and net income could rise from $50 million to $60 million over the same period.